Maximum Freight LLC

If you’ve been following the news, you may have heard that the US and China may be reaching a trade deal. I think the general sentiment is that this will resolve and fix the current volatile tariff situation and bring tariff levels back to reasonable levels.



Now there’s still a lot to learn, as nothing is final as of right now, but I wanted to discuss a couple of points of observation. First, let’s understand what your duties would be if you imported something from China today.
We’ll use a cotton t-shirt as an example.


The rate of duty for a cotton t-shirt currently is 16.5%.



The next thing you would have to add are the additional subheadings for the additional tariffs put in place. These are tariffs under section 301, IEEPA, and the reciprocal tariffs. So the total would be 16.5% plus,20% plus 25% plus 125% for a total of 186.5%



If the cost of your t-shirt was $10 from your supplier, you would pay an additional $18.65 in duties, making the total cost of your shirt (before any other costs) $28.65. (Cost of the shirt + the duties).



What if you imported something that was duty-free? Duty-free simply means the US does not charge any duties/tariffs on a particular commodity. However, duty-free items are not all exempt from the additional duties imposed by these subheadings. Although there are some exceptions, most items are still subject to the additional tariffs.



So, a duty-free item would still be subject to 20% plus 25% plus 125% for a total of 170%. If an item is $10 in cost and duty-free, an importer would still currently have to pay an additional 170% duties or $17 for a total of $27. Yup, that’s right, 170% for a “duty-free” item.





I wanted to bring up this example to do a couple of things. Firstly, I don’t think many people are aware of how tariffs are currently being calculated and that each set of tariffs previously assessed is added cumulatively to create a total on top of your current rate of duties.

The second point is that this current US-China Trade agreement, from my research, is only addressing the reciprocal tariffs. The current anticipated reduction levels are bringing the current rate of 125% to 30% for China and down to 10% for all other countries. This would still leave an additional 75% for Chinese imports, which is still an enormous number for importers and manufacturers, and above all, for US consumers to absorb.



So, while there is some progress being made in trade negotiations between the US and China, will it be enough to really bring down the concerns for US businesses and consumers? If you were to ask me, I would say no. However, it is a big step in the right direction.

Also, too much of the market's anticipation is based on speculation. We need to see what the final decisions are by the current administration and what customs lists as its official updated rates.

9 months ago | [YT] | 1

Maximum Freight LLC

NEW VIDEO COMING OUT NEXT WEEK TO EXPLAIN A FF ROLE IN LOGISTICS!

What is a Freight Forwarder?
One of the hardest things when people ask what I do is explaining exactly what a freight forwarder is. The name itself is confusing. I wish they would rename it freight consultant, logistics partner, or shipping coordinator - these would be more accurate. But even those terms are reserved for real occupations that don't completely encompass what a freight forwarder does.

Being a freight forwarder requires specific licensing and financial requirements defined by the FMC (Federal Maritime Commission). This government agency governs all maritime-related activities, including carrier activities, regulating rates, and enforcing regulations of ocean-related transportation.
A freight forwarder is an NVOCC, which stands for a non-vessel operating common carrier. It's an entity involved in cargo transportation but doesn't own or operate vessels. However, it's authorized and regulated by the FMC to handle all other aspects of transportation, such as documentation, bookings, and providing rates. To become licensed, you must meet certain bond and insurance requirements, prove industry experience, have good referrals, and meet FMC standards.

It's important to distinguish an NVOCC from a VOCC. Sometimes, customers think freight forwarders own vessels or control shipment routes. This is NOT the case. While they may own trucks, forklifts, and cargo vans, they don't own ocean vessels and can't influence routes, cargo space, or destinations.
How does a freight forwarder help your business? I like to think of them as logistics consultants. Consider why you hire a travel agent, lawyer, or real estate broker - these experts understand how to navigate complex landscapes in their fields. Shipping is no different. While straightforward on paper, international shipping is highly complex with many moving parts.

Hiring an expert saves you time researching processes and information. More importantly, it prevents costly mistakes and ensures things are done properly. A good freight forwarder isn't just capable of bookings and quotes. They're connected to the shipping industry, updated with regulations, and experienced in solving complex problems.
Their true value comes from applying expertise to your specific shipments. A good forwarder doesn't know everything but will research to find answers.

Most freight forwarders specialize in specific lanes, countries, commodities, or transportation modes. What you want is someone willing to research on your behalf. They find information faster because they know where to look and are connected to people with answers.

Although forwarders don't own vessels, they may have access to trucking, warehousing, special loading equipment, and other assets. Some operate warehouses, expanding their capacity to store goods, manage inventory, inspect cargo, and perform fulfillment solutions. They may own trucks for easier coordination at ports or container freight stations. Having a yard helps when containers need temporary storage.

If they don't own these assets, good forwarders have relationships with warehouses, trucks, yards, and other vendors. They may have in-house custom brokers or trusted professionals and access to good cargo insurance.
A good forwarder will have offices or trusted agents globally. This is crucial as you need good origin or destination offices to handle shipments before or after vessel boarding. Shipping can be even more complex abroad. Don't hesitate to ask about their global network and who they work with at your destination.

Freight forwarders cannot influence transit times, routings, or scenarios regulated by the FMC, Customs, Port Authorities, or Vessel Owners. They can't change the terms agreed with suppliers or buyers. However, they can be liaisons between parties and provide information to avoid complications.

If you're looking for a freight forwarder, start at fmc.gov and search for NVOCCs in your area. Remember, they operate nationally - you don't need someone local unless you want face-to-face interaction.
Our recommendation is to let your freight forwarder handle customs clearance for imports. It's easier dealing with one entity than several. Even without an in-house broker, they work with trusted brokers who communicate constantly about your shipment.

To get started, provide your personal and business information, a signed limited power of attorney, ID for customs requirements, and a commercial invoice and packing list. If you've never created these, they can assist with details of your shipment.

The biggest advice for international shipping is to get a good forwarder. Lean on them for information to ensure correct shipping. Don't approach international shipping as DIY! While seemingly simple, the industry can be unforgiving. Mistakes cost thousands. Make life easier by forming a good relationship with your freight forwarder.

9 months ago | [YT] | 0

Maximum Freight LLC

What is the best way to track your shipment? Well the honest answer is to call your trusted freight forwarder and ask for an update! Ha! But if you want general information on the whereabouts of your shipment, using a maritime vessel tracker is a great option. In this article we cover the Best 5 Maritime Vessel Trackers, their strengths, limitations, and costs. We also go into how maritime tracking technology works and which vessels are not trackable.

Read more here: shipmaximum.com/best-5-maritime-vessel-trackers-st…

1 year ago | [YT] | 0